14.773 Political Economy:

Institutions and Development

Economists and policymakers increasingly realize the importance
of political institutions in shaping economic performance, especially in the
context of understanding economic development. Work on the determinants of
economic policies and institutions is in its infancy, but is growing rapidly.
Subject provides an introduction to this area. Topics covered: the economic
role of institutions; the effects of social conflict and class conflict on
economic development; political economic determinants of macro policies; political
development; theories of income distribution and distributional conflict;
the efficiency effects of distributional conflict; the causes and consequences
of corruption; the role of colonial history; and others. Both theoretical
and empirical approaches discussed. Subject can be taken either as part of
the Development Economics or the Positive Political Economy fields.